Colorado: South Rangely Mancos well yields gas

A nonoperated exploratory well in Rio Blanco County, Colo., flowed a stable 315 Mcfd of gas from Cretaceous Mancos for more than 10 days with no pressure decline, confirming the presence of hydrocarbons in commercial quantities, said Dejour Energy Inc., Denver.

The vertical well off the southwest flank of giant Rangely oil field cut 90 ft of net hydrocarbon-bearing sand and had been fracture stimulated with 100,000 lb. of proppant and flow-tested in late December 2011. Dejour sees the South Rangely leasehold as a Mancos C (Niobrara) type resource play most suitable for horizontal development. Dejour has a 30% working interest in the vertical well.

TD is 3,863 ft. Results of the vertical test confirmed a trapped hydrocarbon presence in commercial quantities and opened up all of Dejour’s remaining South Rangely acreage in the Piceance basin to lower risk exploration downstructure from the gas accumulation.

Dejour said the company and its partners will focus on the oil leg that is typically found downdip from similar gas accumulations in the Mancos C in this area. The company will report an action plan to efficiently exploit its 6,750 operated gross leasehold acres early in the second quarter of 2012.

Dejour said it will immediately begin working with the US Bureau of Land Management to obtain more drilling permits and with partners and offset leaseholders to create a drilling unit to facilitate an orderly and efficient exploitation of the discovery.